The 22-year-old midfielder had also previously been tracked by Arsenal, but Spurs have now revealed that the Germany under-21 captain will sign for the north London outfit in July, subject to a medical.

Spurs concluded the deal on Friday after sending representatives Qatar, where the Schalke squad are currently taking part in a warm weather training camp. Holtby had publicly declared his intention to leave the Veltins-Arena at the end of his contract in the summer and has been eager for a move to the Premier League.

The player's desire for regular football and to play in European competition - Spurs are third in the Premier League as they target a top four finish - are believed to be the key factors in his decision.

Holtby's move will see him leave Germany for the first time after spells with Alemannia Aachen, Bochum and Mainz before moving to Schalke in the summer of 2009.

Schalke had been desperate to keep Holtby beyond the end of the season but the creative midfielder declined to follow striker Klaas-Jan Huntelaar in committing his future to the club.

Spurs will press ahead with their attempts to sign Joao Moutinho from Porto this month but Holtby provides a quality long-term midfield option for manager Andre Villas-Boas, and becomes the Londoners' second signing of the month after former Manchester United defender Zeki Fryers arrived from Standard Liege on Thursday.

Holtby, who has an English father and is a lifelong Everton supporter, has made 75 appearances in all competitions for Schalke and has scored 11 times for the club, while he has also earned three caps for the senior German national side.